Mutual Fund SIP (Systematic Investment Plan) will be triggered for investments on the SIP dates specified by the customers. But in case of a holiday, the same will be triggered on the next immediate following business or working day.
For example, if your SIP date is 21st of each month and for instance this month’s 21st day is falling on Saturday then your SIP will be executed on 23rd day which will be Monday if there is no holiday that day. In case it is a government declared public holiday on Monday then this will be executed on 24th day which will be Tuesday and so on. Thus, it will be executed in next working day only.
But on what day the SIP amount will be deducted?
Usually, amount gets debited on the the SIP day even if it is Saturday, Sunday or any holiday. Based on above example it will be debited from customer’s bank account on the SIP day 21st.
What day’s NAV (Net Asset Value) will be applicable here?
The working day it will be executed, you will receive same say NAV, however allotted unit may take sometime to credit in your portfolio as these operations happen fast on working days.
There is a time limit also, in India if the investments are done before 2PM then only we will be getting same day NAV, however SIPs will be executed on morning, so nothing to worry.